Export prices for most grades of rice were offered lower by U.S.$ 2-3/MT due to the
weakening of the Thai Baht to the six-month low at 40.2 baht/U.S.$. However, domestic
prices of white rice remain steady at high levels in response to the government intervention
program, which stockpiles white rice paddy of around 3.0 million tons. Domestic prices are
not expected to surge from the current high levels, as foreign buyers still stay away from
Thai rice which is much more expensive than Vietnamese rice. Also, trade sources reported
that current favorable weather conditions will likely result in the better than expected
second crop production. Meanwhile, fragrant rice prices will likely be under downward
pressure because foreign buyer’s demand for traditional Thai fragrant rice, particularly from
Asian countries, reportedly continued to shift to another Thai fragrant rice strain,
Pathumthani fragrant rice, which is still cheaper by around U.S.$ 60-80/MT, as compared to
around U.S.$ 100/MT during previous months.